Muhamalai along with Narga Kovil, are the only land front lines in the Jaffna peninsula. It is strategically important to both sides as the only land route (The A9 highway) to Jaffna passes through Muhamalai. As a result this area is the scene of frequent military operations. More info on this Defencenet post.
The LTTE controlled areas are in the lower right side of the image. The Sri Lankan government controlled areas are on the upper left. The LTTE end of the Muhamalai entry/exit point is visible on the lower left hand corner side.
Detail image – LTTE Muhamalai Forward Defence Lines (FDL)
Compound within LTTE controlled area near Muhamalai
No idea what this “compund” is about but it is south of the FDL. Since I lack further data I’m not going to suggest it is LTTE operations centre ;). Most of the LTTE controlled areas at the time these images were taken (2003-2005) don’t have many prominent features.